Required information The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. Santana Rey decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts. Credit Debit $48,452 3,010 No. Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 119 Merchandise inventory Computer supplies Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation Office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 387 Common stoel 126 128 720 1,854 925 8,200 $ 240 21,400 1,080 1,140 780 1,330 73,649 9,160 318 319 483 413 Retained earnings Dividends Computer services revenue Sales 413 414 415 502 612 613 623 637 Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 640 652 655 676 677 684 In response to requests from customers, S. Rey will begin selling computer software. The company will exten credit terms of 1/10, n/30, FOB shipping point to all customers who purchase this merchandise. However, no ount is available on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the company's new merchandising activities. Its transactions for January thro March follow: Jan. 4 The company paid cash to Lyn Addie for five days' work at the rate of $195 per day. Four of the fi days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24, 300 cash in the company in exchange for more common stock. 7 The company purchased $6,700 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shippin response to requests from customers, S. Rey will begin selling computer software. The company will extend edit terms of 1/10, n/30, FOB shipping point, to all customers who purchase this merchandise. However, no cash scount is available on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its neral ledger to accommodate the company's new merchandising activities. Its transactions for January through arch follow: 7. 4 The company paid cash to Lyn Addie for five days' work at the rate of $195 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24,300 cash in the company in exchange for more common stock. 7 The company purchased $6,700 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,818 cash from Gomez Co. as full payment on its account. 11 The company completed a five-day project for Alex's Engineering Co. and billed it $5,340, which is the total price of $6,670 less the advance payment of $1,330. The company debited Unearned Computer Services Revenue for $1,330. 13 The company sold merchandise with a retail value of $4,800 and a cost of $3,480 to Liu Corp., invoice dated January 13. 15 The company paid $620 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,150 cash from Delta Co. for computer services provided. 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 The company gave a price reduction (allowance) of $800 to Liu Corp., and credited Liu's accounts receivable for that amount. 22 The company received the balance due from Liu Corp., net of the discount and the allowance. 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $476. 26 The company purchased $9,700 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26. 26 The company sold merchandise with a $4,550 cost for $5,970 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $195 per day. ). 1 The company paid $2,775 cash to Hillside Mall for another three months' rent in adyance. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $476 credit from merchandise returned on January 24. 5 The company paid $420 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,650 cash dividend. 23 The company sold merchandise with a $2,600 cost for $3,348 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $195 per day. 27 The company reimbursed Santana Rey $224 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." lar. 8 The company purchased $2,810 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $930 cash for minor repairs to the company's computer. 16 The company received $5,440 cash from Dream, Inc., for computing services provided 19 The company paid the full amount due of $3,950 to Harris Office Products, consisting of amounts created on December 15 (of $1,140) and March 8. 24 The company billed Easy Leasing for $9,107 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,880 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,158 cost for $2,370 on credit to IFM Company, invoice dated March n/30, FUB Gestination, invoice catea Marcn 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $93e cash for minor repairs to the company's computer. 16 The company received $5,440 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $3,950 to Harris Office Products, consisting of amounts creat on December 15 (of $1,140) and March 8. 24 The company billed Easy Leasing for $9,107 of computing services provided. 25 The company sold merchandise with a $2,892 cost for $2,880 on credit to Wildcat Services, invoice dat March 25. 30 The company sold merchandise with a $1,158 cost for $2,378 on credit to IFM Company, invoice dated Man 3e. 31 The company reimbursed Santana Rey $288 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation: a. The March 31 amount of computer supplies still available totals $2,045, b. Prepaid Insurance coverage of $618 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $195 per day. d. Prepaid rent of $2,775 expired during this 3-month period, e. Depreciation on the computer equipment for January 1 through March 31 is $1,080. f. Depreciation on the office equipment for January 1 through March 31 is $240. g. The March 31 amount of merchandise inventory still available totals $574. The following additional facts are available for preparing adjustments on March 31 prior preparation: a. The March 31 amount of computer supplies still available totals $2,045. b. Prepaid Insurance coverage of $618 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $195 per day." d. Prepaid rent of $2,775 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,080. f. Depreciation on the office equipment for January 1 through March 31 is $240. g. The March 31 amount of merchandise inventory still available totals $574. Required: 1. Prepare journal entries to record each of the January through March transactions. View transaction list Tournal entry worksheet 2. Post the journal entries in part 1 to the accounts in the company's general ledger. Note: Begin with the ledger's post-closing adjusted balances as of December 31, 2019 101 Cash Debit Credit Balance Date Dec. 31 Jan 04 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Dec 31 ag , Saved Help Save Required information 106.4 Accounts Receivable-FM Co. Debit Credit Balance Date Dec. 31 106.5 Accounts Receivable--Liu Corporation Date Debit Credit Balance Dec. 31 106.6 Accounts Receivable-Gomez Co. Debit Credit Balance Date 106.7 Accounts Receivable-Delta Co. Debit Credit Balance Date Doc. 31 Dec 31 search OBRIM Required information 106.8 Accounts Receivable-KC, Inc. Date Debit Credit Dec. 31 106.9 Accounts Receivable-Dream, Inc. / Debit Credit Balance Balance Date Dec. 31 119 Merchandise Inventory Debit Credit 126 Computer Supplies Debit Credit Balance Balance Date Dec. 31 Date Dec. 31 e to search o EL DMPe 9 Requieu LIUI 128 Prepaid Insurance Debit Credit 131 Prepaid Rent Debit Credit Date Balance Balance Date Dec. 31 Dec. 31 163 Office Equipment Debit Credit Balance Date Dec. 31 164 Accumulated Depreciation-Office Equipment Date Debit Credit Balance Doc. 31 167 Computer Equipment Debit Credit Balance Date Dec. 31 168 Accumulated Depreciation--Computer Equipment Date Debit Credit Balance Dec. 31 Required information 201 Accounts Payable Debit Credit 210 Wages Payable Debit Credit Balance Balance Date Dec. 31 Date Dec 31 236 Unearned Computer Services Revenue Date Debit Credit Balance Doc. 31 307 Common Stock Debit Credit Balance Date Dec. 31 3 of 3 ! Next > Required information 318 Retained Earnings Debit Credit 319 Dividends Debit Credit Date Dec. 31 Balance Date Balance ook 403 Computer Services Revenue Debit Credit 413 Sales Debit Credit Date Balance Date Balance Required information 414 Sales Returns and Allowances Debit Credit Date 415 Sales Discounts Debit Credit Balance Date Balance 502 Cost of Goods Sold Debit Credit 612 Depreciation Expense-Office Equipment Date Debit Credit Balance Date Balance 613 Depreciation Expense-Computer Equipment Date Debit Credit Balance 623 Wages Expense Debit Credit Date Balance 637 Insurance Expense Debit Credit 640 Rent Expense Debit Credit Date Balance Date Balance 652 Computer Supplies Expense Debit Credit 655 Advertising Expense Debit Credit Date Balance Date Balance Saved Help Required information 676 Mileage Expense Debit Credit 677 Miscellaneous Expenses Debit Credit Date Balance Date Balance 684 Repairs Expense-Computer Debit Credit Date Balance 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger BUSINESS SOLUTIONS Partial Work Sheet March 31, 2020 Unadjusted Trial Balance Dr. Cr. Adjustments Dr. Cr. Adjusted Trial Balance Dr. Cr. No. Account Title 101 Cash 106.1 Alex's Engineering Co. 1062 Wildcat Services 106.3 Easy Leasing 106.4 FM CO. 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc. . . Required information 106.9 Dream, Inc. 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation Office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue On minne Required information 413 414 415 502 612 613 623 637 640 652 655 676 677 684 Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expenso Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense Computer Totals 0 0 0 0 0 Required information The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. Santana Rey decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts. Credit Debit $48,452 3,010 No. Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 119 Merchandise inventory Computer supplies Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation Office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 387 Common stoel 126 128 720 1,854 925 8,200 $ 240 21,400 1,080 1,140 780 1,330 73,649 9,160 318 319 483 413 Retained earnings Dividends Computer services revenue Sales 413 414 415 502 612 613 623 637 Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 640 652 655 676 677 684 In response to requests from customers, S. Rey will begin selling computer software. The company will exten credit terms of 1/10, n/30, FOB shipping point to all customers who purchase this merchandise. However, no ount is available on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the company's new merchandising activities. Its transactions for January thro March follow: Jan. 4 The company paid cash to Lyn Addie for five days' work at the rate of $195 per day. Four of the fi days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24, 300 cash in the company in exchange for more common stock. 7 The company purchased $6,700 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shippin response to requests from customers, S. Rey will begin selling computer software. The company will extend edit terms of 1/10, n/30, FOB shipping point, to all customers who purchase this merchandise. However, no cash scount is available on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its neral ledger to accommodate the company's new merchandising activities. Its transactions for January through arch follow: 7. 4 The company paid cash to Lyn Addie for five days' work at the rate of $195 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24,300 cash in the company in exchange for more common stock. 7 The company purchased $6,700 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,818 cash from Gomez Co. as full payment on its account. 11 The company completed a five-day project for Alex's Engineering Co. and billed it $5,340, which is the total price of $6,670 less the advance payment of $1,330. The company debited Unearned Computer Services Revenue for $1,330. 13 The company sold merchandise with a retail value of $4,800 and a cost of $3,480 to Liu Corp., invoice dated January 13. 15 The company paid $620 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,150 cash from Delta Co. for computer services provided. 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 The company gave a price reduction (allowance) of $800 to Liu Corp., and credited Liu's accounts receivable for that amount. 22 The company received the balance due from Liu Corp., net of the discount and the allowance. 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $476. 26 The company purchased $9,700 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26. 26 The company sold merchandise with a $4,550 cost for $5,970 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $195 per day. ). 1 The company paid $2,775 cash to Hillside Mall for another three months' rent in adyance. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $476 credit from merchandise returned on January 24. 5 The company paid $420 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,650 cash dividend. 23 The company sold merchandise with a $2,600 cost for $3,348 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $195 per day. 27 The company reimbursed Santana Rey $224 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." lar. 8 The company purchased $2,810 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $930 cash for minor repairs to the company's computer. 16 The company received $5,440 cash from Dream, Inc., for computing services provided 19 The company paid the full amount due of $3,950 to Harris Office Products, consisting of amounts created on December 15 (of $1,140) and March 8. 24 The company billed Easy Leasing for $9,107 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,880 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,158 cost for $2,370 on credit to IFM Company, invoice dated March n/30, FUB Gestination, invoice catea Marcn 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $93e cash for minor repairs to the company's computer. 16 The company received $5,440 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $3,950 to Harris Office Products, consisting of amounts creat on December 15 (of $1,140) and March 8. 24 The company billed Easy Leasing for $9,107 of computing services provided. 25 The company sold merchandise with a $2,892 cost for $2,880 on credit to Wildcat Services, invoice dat March 25. 30 The company sold merchandise with a $1,158 cost for $2,378 on credit to IFM Company, invoice dated Man 3e. 31 The company reimbursed Santana Rey $288 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation: a. The March 31 amount of computer supplies still available totals $2,045, b. Prepaid Insurance coverage of $618 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $195 per day. d. Prepaid rent of $2,775 expired during this 3-month period, e. Depreciation on the computer equipment for January 1 through March 31 is $1,080. f. Depreciation on the office equipment for January 1 through March 31 is $240. g. The March 31 amount of merchandise inventory still available totals $574. The following additional facts are available for preparing adjustments on March 31 prior preparation: a. The March 31 amount of computer supplies still available totals $2,045. b. Prepaid Insurance coverage of $618 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $195 per day." d. Prepaid rent of $2,775 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,080. f. Depreciation on the office equipment for January 1 through March 31 is $240. g. The March 31 amount of merchandise inventory still available totals $574. Required: 1. Prepare journal entries to record each of the January through March transactions. View transaction list Tournal entry worksheet 2. Post the journal entries in part 1 to the accounts in the company's general ledger. Note: Begin with the ledger's post-closing adjusted balances as of December 31, 2019 101 Cash Debit Credit Balance Date Dec. 31 Jan 04 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Dec 31 ag , Saved Help Save Required information 106.4 Accounts Receivable-FM Co. Debit Credit Balance Date Dec. 31 106.5 Accounts Receivable--Liu Corporation Date Debit Credit Balance Dec. 31 106.6 Accounts Receivable-Gomez Co. Debit Credit Balance Date 106.7 Accounts Receivable-Delta Co. Debit Credit Balance Date Doc. 31 Dec 31 search OBRIM Required information 106.8 Accounts Receivable-KC, Inc. Date Debit Credit Dec. 31 106.9 Accounts Receivable-Dream, Inc. / Debit Credit Balance Balance Date Dec. 31 119 Merchandise Inventory Debit Credit 126 Computer Supplies Debit Credit Balance Balance Date Dec. 31 Date Dec. 31 e to search o EL DMPe 9 Requieu LIUI 128 Prepaid Insurance Debit Credit 131 Prepaid Rent Debit Credit Date Balance Balance Date Dec. 31 Dec. 31 163 Office Equipment Debit Credit Balance Date Dec. 31 164 Accumulated Depreciation-Office Equipment Date Debit Credit Balance Doc. 31 167 Computer Equipment Debit Credit Balance Date Dec. 31 168 Accumulated Depreciation--Computer Equipment Date Debit Credit Balance Dec. 31 Required information 201 Accounts Payable Debit Credit 210 Wages Payable Debit Credit Balance Balance Date Dec. 31 Date Dec 31 236 Unearned Computer Services Revenue Date Debit Credit Balance Doc. 31 307 Common Stock Debit Credit Balance Date Dec. 31 3 of 3 ! Next > Required information 318 Retained Earnings Debit Credit 319 Dividends Debit Credit Date Dec. 31 Balance Date Balance ook 403 Computer Services Revenue Debit Credit 413 Sales Debit Credit Date Balance Date Balance Required information 414 Sales Returns and Allowances Debit Credit Date 415 Sales Discounts Debit Credit Balance Date Balance 502 Cost of Goods Sold Debit Credit 612 Depreciation Expense-Office Equipment Date Debit Credit Balance Date Balance 613 Depreciation Expense-Computer Equipment Date Debit Credit Balance 623 Wages Expense Debit Credit Date Balance 637 Insurance Expense Debit Credit 640 Rent Expense Debit Credit Date Balance Date Balance 652 Computer Supplies Expense Debit Credit 655 Advertising Expense Debit Credit Date Balance Date Balance Saved Help Required information 676 Mileage Expense Debit Credit 677 Miscellaneous Expenses Debit Credit Date Balance Date Balance 684 Repairs Expense-Computer Debit Credit Date Balance 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger BUSINESS SOLUTIONS Partial Work Sheet March 31, 2020 Unadjusted Trial Balance Dr. Cr. Adjustments Dr. Cr. Adjusted Trial Balance Dr. Cr. No. Account Title 101 Cash 106.1 Alex's Engineering Co. 1062 Wildcat Services 106.3 Easy Leasing 106.4 FM CO. 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc. . . Required information 106.9 Dream, Inc. 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation Office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue On minne Required information 413 414 415 502 612 613 623 637 640 652 655 676 677 684 Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expenso Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense Computer Totals 0 0 0 0 0